The latest stimulus measures in China fail to influence with a focus on American commercial conversations

The last batch in China failed to revive growth with the broader stimulus measures to encourage the stock market because fears of economic deterioration outperform policy optimism, with investors focusing on commercial talks with the United States

The scope of the stimulus package, including interest rate cuts and the main liquidity injection, has led Watch the comprehensive policy last September This gathered the market, and raised the CSI 300 more than 32 % in a six -day winning series.

However, the story did not repeat this time. The measurement index barely skiing on the day of advertising, adding only 0.61 %, and increased on Thursday almost the same. Hang Kong index in Hang Kong gained less than 0.4 % over the two days.

The markets were largely pricing in policies before briefing, as well as concerns about the ongoing trade war that hurts the second largest economy in the world, according to analysts.

The Governor of the Popular Bank of China Ban Gongcheng On Wednesday announced To reduce the main policy prices by 10 basis points and reduce the amount of money that banks need to keep by 50 basis points. Among a set of measures, he said that the central bank will create low -cost facilities to recycle technology and investments in the care of the elderly and the consumption of services.

The incentive was largely in line with the economic priorities placed in the political meeting last month. New Wang, economist and strategic expert at Evercore ISI, said it was only the Stopgap rather than a solution.

The Political Bureau, the second most powerful political body in China, last month He urged local authorities to prepare For the “worst scenarios” with adequate planning, calling for the accelerated implementation of proactive financial and monetary policies. It has also developed plans to support the technology sector financing, which enhances local consumption with export stabilization.

Without a specific mention of the definitions, the central government admitted that “external shock effects” have intensified.

Unlike last September, when PBOC explicitly supported stock markets and provided direct funding for investments and shares, this round of motivation targets industrial and social needs, said Eugene Hussiao, head of the Chinese property rights strategy at Macquarie Capital.

HSIAO said that for a meaningful rally, investors are waiting for more targeted financial measures that directly enhance consumer morale and the most effective plans to support the real estate sector.

The latest economic data outside China indicated economic deterioration. Manufacturing The Procurement Manager Index decreased to the lowest level in 16 monthsSlip to the shrinkage area in April, with a scale on new export orders that have decreased to its lowest levels since December 2022. Service activity in the country slowed in April of the previous month.

China is scheduled to issue its commercial data for April on Friday, which is likely to reflect the full impact of definitions on its external shipments.

YEUUG is estimated at 2.2 % decrease in export growth in April, which is a sharp decrease compared to a strong growth of 12.4 % in March as the front loading of exporters began. The number of container ships from China to the United States decreased dramatically to 42 by the end of April 71 on April 21, according to his estimates.

Fears were rising that the repercussions would move to the labor market. The latest PMI indicated Labor has decreased in all fields In April, when the manufacturers started Stopping And put the workers on a paid leave.

Goldman Sachs estimates that 16 million jobs-2 % of the country’s workforce-are involved in the production of commodities associated with the United States.

The recent cancellation of the American “De Minimis” base, which gave goods of low value of definitions, also sparked work concerns in the intensive sectors at work in China, especially Electronics for clothing and consumption.

China confirmed on Wednesday that the Deputy Prime Minister in which Living will meet will meet with US Treasury Secretary Scott Pesent during a visit to Switzerland later this week while he was claiming to be it. I asked for Washington. Trump bidder With this description.

The planned meeting will take place the first trade talks of the first Chinese state since the escalation of the tariff this year.

Although reaching a comprehensive deal is likely to be complex and takes a long time, the gradual decline in customs tariffs on both sides is possible, although analysts are divided into the pace of this escalation.

Robin Xing, the chief economist in Morgan Stanley, can be reduced by the effective tariff of Chinese goods from the current fading levels to a 45 % station rate by the end of the year.

However, he tries to achieve a more comprehensive deal, similar The first stage deal was signed during the first period of Trump“It will be” long and possibly irregular, “said Tianges Show, chief economist in the Economic Intelligence Unit.

China failed to fulfill its commitment According to the first deal to buy another $ 200 billion in American goods and services over two years, as the Covid-19 web has achieved.

“Don’t think this conversation will lead to anywhere,” said Wang Dan, director of Erarasia Group, in China. For the upcoming tariff meeting with BESSENT. “Things may get worse, and for this reason they rescue the large gun at a later time,” she said, noting that there are stronger possible measures to support the Chinese economy.